Gambling-related Harm

Ronnie Cowan Excerpts

Tuesday 29th March 2022 Westminster Hall

[Aaron Bell (Newcastle-under-Lyme) (Con)]

It is a pleasure to serve under your chairmanship, Ms Rees. I draw the House’s attention to my entry in the Register of Members’ Financial Interests and it is also only right to draw everyone’s attention to the fact that before I came to this place, I was employed by Bet365 between 2006 and 2019. I have not come to this place to be a spokesperson for the gambling industry, but I hope that my experience can be used to inform the House in such debates. Bet365 is a major employer in Newcastle-under-Lyme—I see two colleagues from Stoke-on-Trent here as well—and contributes a huge amount to the local area and to skilled jobs there. I will come to that later.

First, I congratulate the hon. Member for Swansea East (Carolyn Harris) on securing this important debate. I pay tribute to her tenacity and that of my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), and to everybody who has pushed the subject of gambling-related harm, which we all want to see reduced. I see the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston) in his place. The Gambling Minister, the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Croydon South (Chris Philp), visited Bet365 last week, and I know that he shares that ambition. I want to share my experience and understanding of how the industry works to respond to some of the suggestions made by the hon. Member for Swansea East in her opening remarks, and to say that I do fear the impact on the black market. I will come to that in a minute.

The hon. Lady is right to have held the industry to account for so long. It has been too slow to adapt in the past, but has made some big changes in recent years, such as the whistle-to-whistle ban and the code on high-value customers, as referred to by my right hon. Friend the Member for Chingford and Woodford Green. High-value customers are not just addicts; some are seriously wealthy, so have been treated as VIPs in the past. They are big customers that any capitalist firm would wish to have. However, I accept that VIPs have gone wrong in the past.

Points have already been made about advertising, but I am pleased that 20% of TV adverting by the industry now promotes safer gambling and that we are tackling problem gambling. Figures published by the regulator the Gambling Commission, covering the period to December 2021, showed that the problem gambling rate was down from 0.6% to 0.3%, and that the number of those at moderate risk has fallen from 1.2% to 0.8%. In countries such as Italy, Norway and France, those rates are much higher and there are more black markets, either because online gambling is illegal, there is a state monopoly or there are such high tax rates for the companies registered there. I accept that the black market is not a big problem in the UK at the moment, but that is because we have a well-regulated structure for gambling. We can regulate it better and I hope we do so through the review, but we must be mindful that that risk is out there.

I will now talk a little about Bet365 and what it is doing. The Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Croydon South, my hon. Friends the Members for Stoke-on-Trent North (Jonathan Gullis) and for Stoke-on-Trent Central (Jo Gideon) and I visited Bet365 last week. The company has been at the forefront of the industry in trying to address the issue, and has gone above and beyond current regulatory guidance. As I have said, it is rooted in north Staffordshire and did not offshore its sports betting to Gibraltar when most other firms did in order to avoid tax. It has always paid its fair share of taxes, and Denise Coates has always paid her fair share of income tax and not sought to avoid that, despite the headlines that come with that every year.

[Ronnie Cowan (Inverclyde) (SNP)]

This is a caveat, but Denise Coates paid herself a billion pounds over the course of four years. If I earned a billion pounds, I would make sure I paid my tax as well.

--- Later in debate ---

[Ronnie Cowan (Inverclyde) (SNP)]

I must say, I am pleased that people have come here to talk on behalf of the gambling industry. Too often, we talk in a silo and do not hear what other people have to say. I am glad they have come here, spoken out, expressed themselves so eloquently and read their Bet365 briefing so beautifully.

[Jonathan Gullis]

That’s not true.

[Ronnie Cowan]

It absolutely is true. I was sat here beside you and watched you read it.

[Jonathan Gullis]

The hon. Gentleman refers to a briefing that I was reading. I was, indeed, reading a briefing that was presented to the Minister when he visited to explain what the industry was doing, which is forming part of the gambling review. I do not see why it is bad to get a briefing from companies sharing what they are doing. What the hon. Gentleman said is ludicrous.

[Ronnie Cowan]

As I said, a briefing from Bet365—that is exactly what it was.

[Jonathan Gullis]

For the Minister.

[Ronnie Cowan]

It does not matter who it was written for; it is a briefing from Bet365.

[Jonathan Gullis]

You have never had a briefing from anyone else.

[Christina Rees (in the Chair)]

Order.

[Ronnie Cowan]

We will cover that in a minute; we are wasting time.

It is simply not true that 66% of Norwegian gambling is on the black market. I am not trying to replicate Norway. In Norway, gambling is state monopolised, and because of that they use the internet a lot to gamble. In fact, the 66% relates to people using online gambling. It is not black market gambling as we understand it.

On whether the whistle-to-whistle ban works, Stirling University carried out a survey during five football matches with a whistle-to-whistle ban and recorded 2,000 gambling marketing references. It is clearly not working or protecting the people it is supposed to protect.

The all-party parliamentary group on gambling related harm has spoken to all the chief executives of the big gambling firms. We have listened to what they have to say. We have spoken to gamblers who gamble every day and do not have a problem with gambling—we are not trying to step on their toes. If they want to gamble and they are comfortable, they can gamble. We are not prohibitionists. We have spoken to people who control the provision and support for people with addiction. We have spoken to academics, to addicts and to people whose lives have been destroyed by the gambling industry. That is the rounded, responsible way to go about forming a view on this topic, not to sit here and read a briefing from a gambling firm. A number of figures have been chucked around, and they came straight from the PoliticsHome article by Michael Dugher, chief executive officer of the Betting and Gaming Council.

I am not accusing anybody in this room—absolutely no one—but I do know that among those who support the gambling industry, a number of elected MPs are well funded by the industry to do so, while among the people who are fighting to reform gambling and make it a safer environment for all our constituents, no money changes hands.

The film “Erin Brokovich” tells the true story of a campaign against the practices of the Pacific Gas and Electric Company, which had illegally dumped hexavalent chromium—deadly toxic waste—and poisoned the residents in the area. For most people, it is inconceivable that directors sitting in the boardroom of a large and successful company would allow such damage or behaviour in the full knowledge of the harm that they are doing, but that case is not unique. Large corporations have a history of putting profit over people, be they the tobacco giants, which have a long history of denying the health risks of smoking, or the logging companies that ruthlessly exploit the Amazon rainforest for personal gain.

In that respect, industry and politics share the same dynamics. The power to make decisions that affect the lives of many are often made by a few people who sit at the heart of the process. Just like Prime Ministers and senior members of the Cabinet, chief executives and company directors make choices that can have huge impacts on people’s lives, for good and for bad. When they act in their own self-interests, they can heap misery on many others. The damage that they cause may not be apparent to them—they can confine themselves to their ivory towers—but plenty of people who witness that harm are prepared to testify if listened to. Throughout history, a catalogue of people have been willing to turn a blind eye to injustices in return for the opportunity to feather their own nests. When chief executive officers are driven solely by the pursuit of massive personal wealth and the privilege that it brings, the plight of others can easily be ignored or underestimated.

The gambling firms must be today’s equivalent of the tobacco firms. They have taken vast amounts of money, generated massive profits and paid their elite employees huge salaries, while ruthlessly pursuing punters and squeezing every penny out of them. The health and welfare of their customers is not a priority. Games are designed to be addictive. The exponential growth of online casinos has removed the human touch, and punters are reduced to being part of the machine.

Gambling online can be done 24/7—cooling-off periods no longer exist, and chasing losses goes unchallenged. People who have self-excluded are often approached and tempted back to gambling. Free bets in VIP rooms are lures to hook often vulnerable people and draw them back into the fold. People have turned to crime to feed their addictions, families have been left broken, and people have committed suicide. In attempts to divert criticism, the public relations departments of the gambling industry are quick to point out the charitable organisations that they support. In fact, if those who run the gambling industry paid themselves less and their employees more, that money would be spent in local communities, where the benefit would be felt—less charity, more fair distribution of wealth.

The gambling industry also funds research into addiction and support for sufferers, and picks up the tab for the Gambling Commission, which regulates the industry, but it is not right that those who cause the harm have financial control of the research, education, treatment and regulation. The link between industry money and those services must be broken, and funding must be channelled through the NHS in the form of a smart statutory levy. The UK gambling industry employs more than 45,000 people and directly contributes more than £4 billion to the Exchequer. Those are impressive numbers, but the money spent on gambling does not yield as much tax revenue as money spent in the retail or food sectors, and we cannot turn a blind eye to the fact that some of those jobs and much of that profit are the result of gambling-related harm.

I am not a prohibitionist, but I recognise that the gambling industry has to change; it must take responsibility for its products and its punters, and it must recognise the damage of addiction and play a part in reducing it. The industry has run amok since 2005, but in this digital age it is now time to grow up and act responsibly.